Business, 07.03.2020 05:46 clara384

In 2001, a Florida waitress working for an establishment that proudly described itself as "tacky" and "unrefined" sued her employer for breach of contract, alleging that she had been promised a new car for winning a beer sales contest. The manager, the waitress said, had promised her "a new Toyota" but when she claimed her prize, she found out that she had won a "new Toy Yoda" - meaning a Star Wars figure. She was understandably upset. a) Why was she upset? (1 point) b) Suppose the value function captures the waitress' value function over cars. v(x)= x/2 for gains and v(x)=2x for losses What is the total change in value she experiences after she gains a car and then loses it? Assume that she incorporates it into her endowment and therefore adjusts her reference point immediately upon receiving the promise of a car

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In 2001, a Florida waitress working for an establishment that proudly described itself as "tacky" an...

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